Phils Haulage Case Study Analysis


Home >> Harvard >> Phils Haulage >>

Phils Haulage Case Study Solution

Background and Facts

Phils Haulage a workplace products store for small and moderate sized services has just recently been involved in preparing for a merging with its competitor Residence Deport, which has impacted efficiency levels in departmentswith the elderly manager involved in lawful complications put forth by the government Trade Payment. With the Advertising Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With obstacles in the form of a possible cultural modification and low employee spirits, the organization needs a total reengineering effort at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing division of Phils Haulage is raising uncertainty in the working environment bring about numerous difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting critical decisions given that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Payment's treatment in the process. Given the fact that the store has a global visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations might be able to impact performance or calculated goals. Federal Profession Payment's antitrust match against the merger used up useful time of the company's elderly monitoring suggesting that 'political' factors can have major ramifications for a global business.

Economic Factors: Economic factors such as the emergence of small businesses in the worldwide situation recommend that Phils Haulage is flourishing in an environment where there is possible development of services. Along with this, truth that store clients are mostly trying to find workplace products for office suggests that the marketplace has an increasing pattern of business owners and online companies.

Social factors: Social fads in the economy show that consumers are trying to find convenience along with appealing rates. Marketing research demonstrates how the customer for Phils Haulage lacks recognition regarding finding options which can supply a mix of convenience and also affordable.

Technical factors: Technology plays an important duty in Phils Haulage's service method particularly as the organization is piloting Innovation facilities which would use modern technology sales as well as assistance in the type of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Behavior concerns can be seen in Phils Haulage's case as highlighted in this section.

Uneasiness concerning social adjustment: There is apprehension about a cultural change that would certainly happen once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with most of the personnel already showing unhappiness over this prospective relocation. This predicted adjustment has actually produced stress and anxiety in the workplace which has actually been combined with the previous stress of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is lack of employees that can match the stressful setting of a fast-paced company. Not only does this cause trouble in locating the best people, it puts anxiety on brand-new hires as can not endure the rate and also pressure that the organization expects them to birth.

Double Coverage Lines: Beginners discover this organizational culture cumbersome and also tough to handle especially as dotted line connections are indicated to be weak generally and objective setting and also performance assessment is still done by the strong line supervisor. This suggests that beginners might shed quality regarding their particular roles and objectives specifically as populated line reporting does not keep them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been capable and suitable for the work but the reality that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Task Instability: Fear and also insecurity can be determined as 2 major concerns that Lewis would be dealing with particularly as the merging has now be terminated as well as two elderly execs of the advertising and marketing division would be leaving. The whole duty of the division would be falling on Lewis's shoulders who would not simply supervise of brining regarding a cultural modification but would likewise have to show herself in her new role.

Incompatible Administration Style of Leader: Lewis's monitoring design and also its incompatibility with the advertising and marketing division's duty can likewise be seen as an OB difficulty particularly as she has been made use of to handling problems in the operations division where personnel are educated to concentrate on procedures as well as obtain them. The advertising and marketing department on the various other hand can be seen as a group of individuals who are used to being supported by Krasnow who focused much more on result than processes.

Interdepartmental Differences: Interdepartmental disputes between 3 departments, advertising, merchandizing and procedures respectively over the allocation of the advertising mix can be identified as an additional OB worry. Although the advertising division does not share the exact same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures departments do not concur over the advertising mix allotment among one another either.

Disintegration in Marketing Department: Disintegration between the marketing and advertising departments can be recognized as an additional OB problem which could require more focus. The fact that the marketing and advertising sections in the advertising division are separated is avoiding both divisions from acquiring from each various other's experience and know-how. Combination of advertising with merchandising and also operations would end up being harder if the advertising department itself is broken down which can be one more potential OB worry.

Phils Haulage Analysis

Different concepts have actually been used to describe the conditions to obtain additional quality regarding the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are easy and also lazy, have little ambition and also stand up to change. The hard version of this theory emphasized coercion, tight controls, dangers and also punishments. Gradually it generates low productivity, refined sabotage as well as rivalry (Bargain, 2003). Although the situation at Phils Haulage is not totally adhering to Concept X, it can be seen that new hires are discovering this setting instead difficult which may eventually result in a greater inclination of the administration towards Concept X. As per McGregor's advocated sight, which he called Concept Y, the crucial job of the administration is to set up organizational conditions to ensure that people can attain their very own goals best by routing their initiatives in the direction of organizational incentives. If people discover no fulfillment in their job, the administration would certainly have little choice however to count on theory X and outside control (Deal, 2003). Even while analyzing Lewis's administration design, theory X might have been suitable in the procedures department to some extent however the Marketing department would call for reliance on Concept Y so as to get the creative thinking as well as creativity from the groups.

Tuckman's Teamwork Theory: As much as Lewis's worry regarding bringing harmony between the advertising and advertising department is concerned, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising and marketing as well as advertising and marketing division's job, there might be the same initial separate which might lead to the 2nd stage of 'storming' where the teams test one another.

When people are provided with modification, they get in stage one and so there might be emotions like sadness, unpredictability, stress, anger, worry, rejection as well as disorientation.The circumstance at the advertising and marketing department of Phils Haulage is comparable so Lewis can get comfy with the suggestion that it is not extraordinary behavior. It is throughout this stage that Lewis will certainly have to give assistance to the division so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition less complicated by making Lewis obtain involved in the division a year prior to his real separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB issue related to insecurity at the office has actually been activated first of all by the modification in monitoring as well as secondly by the truth that the merger will no more be launched. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the significance of 'protection requires as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel protected and also out of danger' goes to the 2nd level of needs. Before an employee can be made to create mentally, he requires to have his 'Physical 'and 'Security' requires fulfilled. This suggests that unless the employees are made to feel safe and secure about their current work condition in Phils Haulage they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Phils Haulage Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous theories to comprehend just how to deal with the present situation available. The complying with three choices have actually been proposed to assist Lewis manage the business difficulties in the advertising and marketing department. Each of these options has been suggested for reducing the change needed to bring the marketing division in line with the demands of the marketplace as well as for making the cultural modification that would certainly adhere to when the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Manufacturing functions. Combination of Advertising And Marketing with Operations.

Examination of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business advertising and marketing along with agency and also retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both advertising and also marketing functions.

The benefit of this technique is that it will incorporate both features while decreasing the demand for employing an extra resource for marketing. Lewis would certainly be heading the advertising division and also in any kind of case her replacement would be needed for the present duty that she is doing. The disadvantage of this alternative is that external hiring might bring about animosity from interior personnel that may be considering the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Provided the competitive pressures and high quality job called for from the marketing firm, it is recommended that Lewis ought to permit the manufacturing unit to be a different function from the advertising system. Since the majority of advertising agencies had these two features as separate devices, it makes even more feeling to follow the norm.

Assimilation of Advertising And Marketing with Operations: Because Lewis is currently taking treatment of the advertising and marketing and also procedures departments at the same time; it makes sense to incorporate the 2 functions considering that she has been efficiently taking care of both ends. The fact that Lewis has to adapt her monitoring design for the advertising department recommends that these two departments would certainly be culturally diverse.


An evaluation of the 3 options shows that assimilation of advertising and marketing as well as operations would certainly not be a possible action due to the substantial distinctions between the 2 divisions despite the truth that currently Lewis is managing both. While separation of the production function may have been a beneficial relocation for the advertising and marketing division, the fact that it would suggest placing a third feature under Lewis's wing indicates this ought to be stayed clear of.

Activity Plan.
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

Judith Shapiro will be hired to take Lewis's location as SVP of advertising and marketing.

Manufacturing feature will certainly remain part of marketing under advertising feature.

Lewis will certainly separate herself from operations.

An autonomous management design with employee empowerment will certainly be made use of in marketing division.

Open door plan as well as emphasis on cross departmental interaction will be aimed at eliminating discord.

Contingency plan.

If the integration does not exercise as intended, a contingency strategy would certainly comply with which would divide the production function from the marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will certainly be divided by putting it under an SVP manufacturing.